MBSD vs VYM
MBSD vs VYM
FlexShares Disciplined Duration MBS Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MBSD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $89M | $79.0B | |
| Dividend Yield | 4.19% | 2.86% | |
| Holdings | 482 | 568 | |
| YTD Return | +0.08% | +15.80% | |
| 1Y Return | +2.79% | +26.12% | |
| 3Y Return (annualized) | +4.21% | +18.25% | |
| 5Y Return (annualized) | +0.55% | +12.51% | |
| Volatility (annualized) | 3.5% | 14.6% | |
| Max Drawdown | -18.0% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 3, 2014 | Nov 10, 2006 |
MBSD vs VYM Performance
FlexShares Disciplined Duration MBS Index Fund (MBSD) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MBSD returned +2.79% while VYM returned +26.12%. Year to date, MBSD is up 0.08% versus a gain of 15.80% for VYM.
Over three years, MBSD compounded at +4.21% per year against +18.25% for VYM; over five years the annualized figures are +0.55% and +12.51% respectively. Across the full 12-year window we track, VYM has the edge at +7.07% annualized vs -0.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.5% for MBSD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -18.0% for MBSD and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBSD charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, MBSD currently yields 4.19% against 2.86% for VYM.
Holdings Overlap
MBSD and VYM share 0 holdings out of 1020 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MBSD or VYM?
MBSD has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, MBSD or VYM?
Over the past year MBSD returned +2.79% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), MBSD annualized -0.09% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MBSD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.5% for MBSD. Worst drawdown: MBSD -18.0% vs VYM -58.8%.
Should I hold both MBSD and VYM?
MBSD and VYM have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBSD and VYM?
MBSD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1020 unique securities.
Which pays a higher dividend, MBSD or VYM?
MBSD yields 4.19% while VYM yields 2.86%, so MBSD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.